ZSE plunges 4,42pct amid broad-based sell-off – YTD gains still strong

The ZSE All Share Index recorded a substantial decline, dropping 4,42 percent to close at 239.56 points. This marks a volatile period for the index, which remains up by a remarkable 139,56 percent year-to-date.

Similarly, the Top 10 Index lost 4,84 percent, reflecting broad-based declines among major players.

Prominent losses were led by British American Tobacco Zimbabwe Limited, which fell by ZiG 1 935.00 to ZiG 10 965.00, and Delta Corporation Limited, which shed ZiG 170.66 to close at ZiG 1 500.00. Other notable decliners included Hippo Valley Estates Limited, Seed Co Limited, and Nampak Zimbabwe Limited, which posted declines ranging from 3 percent to 14 percent.Zimbabwe car imports

On the upside, NMBZ Holdings Limited emerged as the top gainer, adding ZiG 0.31 to close at ZiG 370.56, signalling resilience in the financial services sector.

The VFEX posted a milder performance compared to the ZSE, with the VFEX All Share Index inching up by 0.28 percent to 96.66 points. Total market capitalisation rose slightly by 1.67 percent to US$1.19 billion. While major counters such as Padenga Holdings Limited saw limited movement, First Capital suffered a notable decline of 14.63 percent, closing at US$0.04.

Turnover on VFEX spiked significantly to US$17,59 million, signaling heightened investor interest compared to previous trading sessions, where activity remained subdued.

The consumer goods and agriculture sectors bore the brunt of Thursday’s sell-off, as evidenced by steep losses in Delta Corporation and Hippo Valley. These declines come amidst ongoing inflationary pressures and currency fluctuations that have been weighing on corporate earnings.

Despite this, financial and diversified investments displayed resilience, with select stocks managing to close in the green, buoyed by strategic announcements and dividend payouts.

While Thursday’s trading session witnessed sharp declines in key indices, long-term trends remain positive, especially for the ZSE, which has seen significant gains year-to-date. Analysts suggest caution for investors as macroeconomic headwinds persist, but opportunities remain in sectors poised for recovery.

FBC Securities said investors are advised to focus on companies with robust fundamentals and to monitor upcoming corporate events, including the Annual General Meetings for RioZim and National Foods scheduled for later this month.Company products. -ebinssweekl